A Study on the Difference Between Radical Innovation and Incremental Improvement in Pre-Development Practices of NPD Projects

Abstract

This paper presents an exploratory study of pre-development practices in Malaysian food and beverage manufacturing SMEs. A questionnaire survey is used to explore the difference in pre-development implementation practices between radical and incremental new product development (NPD) projects. The survey was performed at 164 food and beverage manufacturing SMEs. The respondents were chosen from those who are directly involved with pre-development practices, such as the owner/CEO of the SMEs. The analysis was conducted using Statistical Package for Social Science (SPSS) software version 17. Descriptive statistics and independent-samples t-test were carried out to generate and validate the results observed. The significant difference values for independent-samples t-test is less than .05 (p≤0.05). Survey results revealed the differences in pre-development implementation practices between radical and incremental NPD projects for several activities in pre-development phases. Incremental NPD projects considered listening to customer needs (p=0.00) is an important activity during idea generation phase, however radical NPD projects emphasis that analysis of competitors‟ products (p=0.02) and continuous product improvement (p=0.00) are crucial. Mean while during development of new product concept phase, and project evaluation phase radical NPD projects were more innovative compared to incremental NPD projects in several activities such as creating prototypes/product samples, linking company‟s operational capabilities with proposed product, and conducting a formal risk analysis. The significant values of the activities were between 0.00 and 0.04 which is lower than significant level 0.05.